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Top 3 Tips to Get A ULIP Plan at a Lower Cost

A ULIP plan, or a Unit Linked Insurance Plan, was a very popular choice for investment amongst Indians in the past years. Today, however, most people are more attracted to investing in Mutual Funds. This happened because of the sudden financial crash of the share markets in 2008.

Although markets have stabilized in the last few years, people are still not too much in favour of a ULIP policy. But they are not aware that ULIPs can yield better returns at lower costs and are an amazing way to save money for the future.

In this article, we will talk about investing in a ULIP plan at a lower cost. Let’s get straight into the tips then.

  1. Buy a Low-Cost ULIP Online

Today, everything is possible with the internet. So much so that you can now choose your ULIP policy online, sitting at the comfort of your home/office. Therefore, to get a low-cost ULIP insurance policy, an online investment will be the best way to get one. The best thing about purchasing a ULIP plan online is that you can enjoy the benefits of a nil premium allocation, and also, there will be no policy administration charges. This will further reduce the amount of money you will have to pay while investing in your chosen ULIP. Additionally, online renewal, such as Tata AIA life insurance renewal can be done online in a few easy steps. This reduces the costs of actually travelling to the branches to renew your policy.

  1. Invest In a Long-Term ULIP Plan

Just like Mutual Funds investments, investing in ULIPs will need patience. So, it’s better to choose a ULIP policy that has a long period of returns. This way, you will also be able to enjoy greater returns in the future. The typical holding period for ULIP insurance policies is 12-15 years. However, you need to be well aware of the market trends related to debt funds and equity funds. This way, you will make sound financial decisions and choose the best low-cost ULIP for yourself.

  1. Go For a High-Value Life Cover

ULIPs can be your perfect tax-saving partner as well. So, while investing in a ULIP plan, try choosing a life cover that’s valued at ten times your yearly premium. This will help you in availing of the best tax benefits as well. ULIP insurances are tax-saving insurance policies that can help you get tax deductions of up to ₹1.5 lakhs as per  Section 80C of the Indian Income Tax Act.

Conclusion

However, it is also not advisable to go for a low-cost ULIP plan by jeopardizing your potential returns. It would help if you also focused on the performance of the ULIPs and your invested amount. And the best way to be sure about your ULIP plan is to do some good research before opting for one. You can also check your ULIP premiums online through premium calculators. And once you are sure about what you can invest in and what you can expect in terms of returns, go ahead and invest in a ULIP plan.

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